Diodes Incorporated (DIOD)

Days of inventory on hand (DOH)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Inventory turnover		1.86	1.79	1.91	2.18	2.57	3.15	3.49	3.39	3.26	3.13	3.12	3.10	3.26	3.33	3.23	3.06	2.60	2.93	2.99	3.35
DOH	days	196.34	203.47	191.12	167.26	141.76	115.80	104.47	107.53	112.08	116.65	116.89	117.89	112.13	109.56	113.14	119.23	140.43	124.64	121.99	108.89

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.86
= 196.34

Diodes Incorporated's days of inventory on hand (DOH) have shown fluctuations over the past few years. The trend indicates an increase in inventory holding periods from March 31, 2020, to a peak of 203.47 days on September 30, 2024. This significant spike in DOH signals potential concerns about the company's inventory management efficiency and liquidity.

From September 30, 2024, the DOH decreased to 196.34 days by December 31, 2024. This reduction may suggest efforts to optimize inventory levels or address any imbalances in the supply chain. However, the DOH remains relatively high, indicating that Diodes Incorporated may still be facing challenges in controlling its inventory turnover efficiently.

Analyzing the quarterly variations in DOH can provide insights into Diodes Incorporated's inventory management practices and supply chain operations. It is essential for the company to closely monitor and manage its inventory levels to improve operational efficiency, reduce carrying costs, and enhance overall financial performance.